Closing lid on T60 drops resolution to 1024x768

I have T60 8743CTO (ATI video). The regular resolution is 1650x1050, but when I close (or nearly close) the lid it drops to 1024x768 (or so I think) messing up all windows' positions and sizes. It didn't happen with previous video driver, but started to happen after I updated to the latest driver (8.533.3.1-081110a-075168). I do not want to move back to the prev. driver because it was buggy (sometimes it caused the whole system to freeze).

Does anyone else has this problem and can we expect a fixed driver for this issue?